[The Following Information Applies to the Questions Displayed Below

question 116

Multiple Choice

[The following information applies to the questions displayed below.]
Astoria Co.had the following transactions during the month of August 2018:
(1) Cash received from bank loans was $20,000.
(2) Dividends of $9,500 were paid to stockholders in cash.
(3) Revenues earned and received in cash amounted to $33,500.
(4) Expenses incurred and paid were $26,000.
-What amount of net income will be reported on an income statement for the month of August?

• A)$20,000.
• B)$7,500.
• C)$0.
• D)$33,500.

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Definitions:

Compounding Frequency

Compounding frequency refers to the number of times per year that earned interest is added to the principal balance of an investment, affecting the total interest earned over time.

APR Interest

Annual Percentage Rate; a measure that reflects the total interest to be paid on a loan, mortgage, credit card, or other financial product, factored as an annual rate.

Monthly

Pertains to something occurring, produced, or settled every month.

Annual Discount Rate

The rate used to discount future cash flows to the present value, reflecting the time value of money and investment risk.